Category Archives: International Tax Advisory

Our International Tax Group takes stock of new proposed regulations that try to keep Section 956 relevant despite the Tax Cuts and Jobs Act.
Many were left scratching their heads
“A result directly at odds with the manifest purpose of Section 956”
Impact of the proposed regulations
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Our International Tax Group explores the hidden terrain for individuals found in the new tax on global intangible low-taxed income (GILTI).
The Section 250 deduction
The renewed importance of Section 962
Beware of the C-corp. lobster pot
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The IRS’s opening salvo of proposed regulations under the Tax Cuts and Jobs Act’s global intangible low-taxed income is as complex as you would think. Our International Tax Group cuts through the clutter to address the key takeaways:
Computation of GILTI inclusion
Anti-abuse rules
GILTI guidance still to come
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There is a disconnect between the statute and the regulation that impose penalties for violating FBAR filing requirements. Our International Tax Group covers the bases of the three court cases that have the IRS batting just 1 for 3.
The 2004 statute can impose a penalty greater than $100,000
The regulation, which wasn’t updated, limits penalties to $100,000
Two courts favor the regulation; one the statute
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The IRS has announced its intent to beef up enforcement efforts against tax noncompliance relating to transactions in cryptocurrencies. Despite this effort, various tax aspects of cryptocurrency transactions remain uncertain. Our International Tax and Blockchain & Distributed Ledger groups team up to explain how this uncertainty affects cryptocurrency funds.
Cryptocurrencies are treated as property, not currency, for tax purposes (but the certainty largely ends there)
Can cryptocurrencies and their derivatives qualify as commodities for tax purposes?
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Our International Tax Group discusses a recent case that offers a cautionary tale on statutory limitations periods and shows how even seemingly straightforward provisions are open to interpretation.
10 years vs. three years vs. two years?
When is a refund “attributable to” foreign taxes?
What does it mean to “pay” taxes?
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While the omnibus spending bill didn’t do much to clarify the Tax Cuts and Jobs Act, it did make some corrections to other tax laws. Our International Tax Group discusses some of those corrections for qualified foreign pension funds and the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA).
Requirements for qualified foreign pension funds
Changes for problematic requirements
Corrections to the PATH Act
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The IRS gives taxpayers a bit more direction on two provisions of the Tax Cuts and Jobs Act already in force. Our International Tax Group breaks down the new guidance for the repatriation tax and foreign partner withholding.
Notice 2018-26 previews anti-avoidance and other rules under Section 965
Notice 2018-29 moves ahead with withholding for non-publicly traded partnerships under Section 1446(f)
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The Tax Cuts and Jobs Act replaced the earnings stripping rules with a new limitation on deductions for business interest expense. Our International Tax Group examines the new law and what it means for interest expense deductions going forward.
Special rules for partnerships and S corporations
Rules for corporations
What the new limitation leaves out
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How did a section of the Internal Revenue Code destined for repeal by both the House and Senate versions of the Tax Cuts and Jobs Act survive the final Act? Our International Tax Group examines the future application of Section 956 in the wake of the new tax regime.
Section 956’s 50-plus-year history
The House and Senate versions
Scope of application
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